April Jobs Report: The Labor Market is Finding a New Normal
April Jobs Report: The Labor Market is Finding a New Normal
The April Employment Report shows a stabilizing trend, with 115,000 jobs added and unemployment holding at 4.3%. Declining labor force participation means fewer jobs are needed to maintain that rate. Excluding February's weather- and strike-related blip, the first four months of 2026 suggest the mid-six figures may be the labor market's new normal.
Despite rising gas prices, transportation and retail both posted strong job gains in April.
Transportation and Warehousing reported a 30,300 gain in jobs, with 38,000 jobs added for couriers and messengers, propping up growth in that sector.
Retail saw an increase of 22,000 jobs.
Healthcare continued to be a frontrunner for growth, with 37,000 jobs added, in line with the 12-month average of 32,000 and still taking up a large share of overall job growth.
In April, Healthcare job growth accounted for 32% of all job gains – still strong, but lower than the 2025 job market overall where gains in Healthcare overshadowed a loss across the rest of the labor market. The labor market now is starting to become more balanced as employers across industries continue to see meaningful growth.
The Information and Finance industries lost jobs in April.
Information was down 13,000 jobs in April, and is now down 342,000 jobs since the peak of employment 3.5 years ago, with much of the job loss concentrated in telecommunications and media.
The Financial Activities industry shed 11,000 jobs after several months of near zero job growth.
The Federal Government continued to lose jobs, down 9,000 in April, bringing the total job loss down to -348,000 since October 2024.
The unemployment rate remained steady at 4.3%, but deeper measures highlight the challenges this workforce faces.
While the headline number was stable, the unemployment rates for teenagers (+0.7%) and Black workers (+0.2%) both ticked up. These measures can often be leading indicators of the labor market overall.
Labor force participation continued to fall, now down to 61.8%.
A smaller labor force means there are fewer jobs needed to maintain stable unemployment. An aging population, reduction in immigration, and a low birth rate are all contributing factors to the pull back in labor supply. This demographic shift will recalibrate how labor market health is measured.
Those working part-time for economic reasons increased as workers have a difficult time finding full time work, pushing up the U-6 rate of labor underutilization to 8.2%.
Hourly earnings increased by 3.6%, up from a month ago but still lower than the previous 12-month average of 3.8%. Inflation remains elevated, threatening to wipe out any real gains from wages.